“Africa in Global Economic Governance: South Africa’s G20 Presidency and the Measurable Outcomes"
When South Africa took over the Presidency of the G20 in December last year, we announced the Theme of our G20 Presidency, namely Solidarity, Equality and Sustainability, as a response to the global uncertainties and crises that currently prevail. At the core of this Theme is the African philosophy of Ubuntu, which resonates with the slogan of Agenda 2030 and related SDGs, namely: Leave No One Behind.
The G20 is the premier forum for economic cooperation, mainly concerned with the stewardship of the global economy, especially in times of global economic crisis, e.g. the 2007/8 global economic meltdown and the 2020 COVID-19 global pandemic and its consequences. Also important to underscore is that the G20 is not an alternative to the United Nations, but an informal grouping complementary to its work. For South Africa, the UN is the main legitimate institution of global governance.
At the core of South Africa’s G20 Presidency, therefore, is how the G20 should collectively respond to create an environment of inclusive economic growth, reduced inequality and sustainable development, especially in the Global South and the African continent in particular. It is for this reason that South Africa has sought to build on the developmental agenda advanced by the Presidencies of Indonesia, India and Brazil. Our work is also aligned to the developmental agenda of the African continent, as espoused in Agenda 2063: The Africa we Want.
South Africa will host the G20 Summit for the first time on African soil, as the first African country to preside over the G20. It is a pivotal moment to promote greater collaboration between African nations and the rest of the world.
Since officially assuming the G20 Presidency on 1 December 2024, South Africa has thus far convened 100 out of 132 meetings across all the Sherpa Track (15) and Finance Track (8) Working Groups, including the three Task Forces established by our Presidency. These meetings discussed some of the most important and urgent challenges facing the global community, reflecting our strong determination to seek sustainable and innovative solutions through dialogue, collaboration and cooperation.
South Africa’s G20 priorities and deliverables are aligned to the original G20 mandate of promoting Strong, Sustainable, Balanced and Inclusive Growth. Our four overarching priorities thus seek to address those challenges that stifle the ability of our Continent in particular to achieve our desired levels of growth and development.
First, we are taking action to strengthen disaster resilience and response.
Climate-induced natural disasters are affecting countries around the world, with devastating impacts on those countries that cannot afford the costs of recovery and rebuilding.
Therefore, we are calling on G20 Leaders to urge the global community, including international financial institutions, development banks and the private sector, to scale up post-disaster reconstruction.
Second, we are taking action to ensure debt sustainability for low-income countries.
The policy space available to developing countries is significantly constrained by their debt servicing obligations and their climate and development financing needs.
For example, the total public debt of African countries in 2022 was US$1.8 trillion, an increase of 183% since 2010, with 23 countries paying more for debt costs than critical development enablers like health care and education.
South Africa is uniquely positioned to champion this issue as we are both a debtor and a small creditor, and we are based on the African continent, where there are many debt sustainability challenges.
We are working to ensure that the sovereign credit ratings are fair and transparent and to address high risk premiums for developing economies.
South Africa is also reviewing the Cost of Capital during our G20 Presidency. The overarching goal of this initiative is to investigate the issues that impair the ability of low and middle-income countries to access sufficient, affordable and predictable flows of capital to finance their environmentally responsible and socially inclusive development plans.
Third, we are mobilising predictable and increased finance for a just energy transition.
G20 Leaders should secure agreement on increasing the quality and quantity of climate finance flows to developing countries, as previously agreed.
This includes strengthening multilateral development banks, enhancing and streamlining support for country platforms, such as the Just Energy Transition Partnership, and more effectively leveraging private capital.
Fourth, we are harnessing critical minerals for inclusive growth and sustainable development.
Natural capital and critical minerals are important for Africa’s socio-economic development. By advancing policies that promote value addition at source, regional cooperation, and transparent governance, South Africa’s G20 Presidency is championing an inclusive framework that ensures resource-rich nations and communities benefit equitably from their mineral wealth.
The Presidency seeks to have a Critical Minerals Framework Document adopted by the G20. The G20 Critical Minerals Framework is a voluntary, non-binding, cooperative blueprint to ensure that critical mineral resources become a driver of shared prosperity and sustainable development.
In addition to our four overarching priorities, we have also established 3 Task Forces which are focusing on:
- Inclusive Economic Growth, Industrialisation, Employment, and Reduced Inequality.
- Food Security.
- Artificial Intelligence, Data Governance and Innovation for Sustainable Development.
Under South Africa’s presidency we are also evaluating the G20’s first full cycle of presidencies under the G20@20 Review,
To translate policy frameworks into scaled-up inclusive growth, industrialisation, employment and reduced inequality in Africa, South Africa’s G20 Presidency is championing an elevated and broadened Compact with Africa (CwA) initiative, which will be driven by Agenda 2063, and particularly, the Second Ten-Year Implementation Plan of the AU.
The Compact with Africa, co-chaired by South Africa and Germany, is designed to facilitate economic reforms across the continent, and to attract investment from pools of private-sector funds in the global North.
It is our view that strengthening partnerships and expanding dialogue with a wide range of actors is important to collectively shape the G20’s approach to issues requiring international cooperation.
Therefore, South Africa will also host a G20 Social Summit by expanding outreach to communities beyond the 13 G20 Engagement Groups. We invite civil society organisations, think-tanks and academia from across the world to join the 2nd G20 Social Summit in November.
In terms of what can be expected in the crucial final phase of South Africa’s G20 Presidency, the main feature is the all-important negotiations of Working Group Ministerial Outcomes across the Sherpa and Finance Tracks.
In terms of what can be expected in the crucial final phase of South Africa’s G20 Presidency, the main feature is the all-important negotiations of Working Group Ministerial Outcomes across the Sherpa and Finance Tracks.
Thus far, South Africa has successfully convened four G20 Ministerial Meetings that culminated in consensus-based outcome documents or Ministerial Declarations. These include:
- The G20 Development Ministers’ Meeting.
- The G20 Labour and Employment Ministers’ Meeting.
- The G20 Tourism Ministers’ Meeting.
- The G20 Food Security Task Force Declaration and Ubuntu Principles on Food Security, Nutrition and Excessive Price Volatility.
Further, a Finance Ministers and Central Bank Governor’s Communique was adopted in Zimbali in July. These outcomes reflect South Africa’s commitment to inclusive multilateralism and its leadership in advancing global cooperation on development, employment, sustainable tourism, and food security. At these meetings we have managed to find landing zones acceptable to most delegations. Importantly, retrogression on the commitments adopted in Rio last year and in previous G20 Summits has been avoided thus far. It is this spirit of cooperation and accommodation that will inform our approach to the finalisation of the Leaders Declaration. Unfortunately, however, consensus could not be reached in the following meetings on a Declaration and, thus, a Chair’s Summary or Statement was finalised:
- Agriculture Working Group Ministerial Meeting.
- Research and Innovation Working Group Ministerial Meeting, although “Recommendations on Science Engagement” was adopted.
- Digital Economy Working Group Ministerial.
- Task Force 3 Ministerial Meeting on Artificial Intelligence, Data Governance and Innovation for Sustainable Development.
South Africa’s G20 Leaders’ Declaration is envisaged to be ambitious, bold and concise. The Declaration will focus on High-Level “leader-like” commitments. It will build on South Africa’s G20 Presidency Theme, overarching priorities, and high-level deliverables, with a strong emphasis on the developmental agenda for the Global South and the African continent.
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